AGC’s New Leadership Style and Organizational Culture

AGC Capital is experiencing multiple problems that center on the management of
human resources. The company has three subsidiaries located in various parts of the
world. The first subsidiary is located in Asia, while the second and third subsidiaries are
located in Asia and South America, respectively. The company relocated people to the three
subsidiaries. The company aimed to ensure that it created a unified culture across all its
subsidiaries. The company employs approximately 84,000 employees. With each employee
being trained for three to six months. Some employees have left the organization, citing
various reasons. Retraining new employees takes time and resources, and therefore the
company is facing problems that relate to the retention of employees.
AGC has failed to meet its financial obligations, with profits declining and failing to
hit the targets. The failure to meet its financial goals indicates a huge problem at AGC. The
company is not performing well, and this can be traced down to human resource problems.
While the company has been a market leader, the position is under threat due to
underperformance. Employees are drawn from different cultures. The decision to create a
unified culture has resulted in intercultural communication issues. The company is also
unable to accommodate diversity and handle different cultures well in the workplace setup.
Employees are demotivated and, as a result, are dissatisfied with the current managerial
decisions. The company has also failed to adopt an appropriate human capital management
strategy that will suit the company’s global operations.
Intervention
The company needs to adopt a different strategy that will ensure that the organization
is more responsive to different cultures. It is important for the organization to break both

UNIT 5 – INDIVIDUAL PROJECT 3
cultural and language barriers. In each of the subsidiaries, the leadership should work towards
ensuring that a common language is identified. A common language will help ensure that all
employees can communicate with ease (Barak, 2016). The language should be selected based
on what the majority are comfortable with. Further, the language selected should be used in
all meetings as well as formal events. It is also important to consider different cultural
communication styles. Every culture places weight on different communication styles. It is
important for the leadership of each subsidiary to ensure that these styles are considered. The
company needs to hire leaders drawn from the host country. Having a member of the host
country in the leadership position will help breakdown cultural barriers that could be
experienced in the workplace. The decision to create a unified culture has created additional
problems in the workplace, and it, therefore, needs to be reversed.
It is important to ensure that the training process includes interpersonal skills. With
employees being drawn from different cultures, it is important to improve the levels of
cultural sensitivity in the workplace (Barak, 2016). Training is important since it provides
clear career paths for advancement. Employee retention can be improved through proper
training. Sensitivity training will help ensure that both the management and the employees
focus on the achievement of company goals (Barak, 2016). Through sensitivity training and
multicultural training, the employees will be more sensitive to individuals drawn from
different races, religions, or ethnicity. The management needs to have a meeting with the
employees where the issues that the employees face will be raised and addressed. Involving
the employees in the decision-making process helps ensure that employees feel empowered
and motivated (Barak, 2016). It is important for the management to ensure that the
communication channels are opened. The contribution of employees towards the decision-
making process will help in maximizing productivity.

UNIT 5 – INDIVIDUAL PROJECT 4
In addition, it is important to provide employees with appropriate benefits. AGC
needs to ensure that it pays competitive salaries. The strategy will not only boost the morale
of the employees but also ensure that all employees. It is important to ensure that a friendly
work environment is created. Employees need to be recognized for their hard work
(Hanaysha & Majid, 2018). It is therefore important for AGC to create a friendly workforce
that will ensure that employees are recognized for their hard work. A friendly competition
should be encouraged to ensure that all employees strive to ensure maximum productivity.
Evaluation
There are many ways of evaluating the success of the program implemented. One
method is analyzing retention rates. The aim is to improve the retention rates; therefore, the
number of employees that leave the organization will be contrasted with the ones that
continue being part of the organization. The previous retention rate will also be compared
with the current and future retention rate. Another method of evaluating the effectiveness of
strategies implemented is performance. The company has not been meeting its financial
goals. An evaluation of performance will help in gauging whether or not the strategies
implemented are effective or not. The performance will be evaluated at both the
organizational; level and individual level. The level of motivation will also be considered.
Currently, the motivation levels in the organization are low. As a result, the implementation
of the strategies is expected to result in an improvement in the levels of employee motivation.
An interview of the employees will help in revealing the levels of employee motivation.
Communication between employees and the management will also help in assessing the
effectiveness of the strategies implemented. In the organization, communication has been one
of the major problems being witnessed. It is therefore important to weigh in on the level of
communication and the success of the strategies implemented with regard to improving
communication.

UNIT 5 – INDIVIDUAL PROJECT 5
AGC’s New Leadership Style and Organizational Culture
AGC needs to employ transformational leadership style. Transformational leadership
is characterized by a leader working closely with the employees to identify the areas that
need change (Diaz-Saenz, 2011). The leadership needs to ensure that it creates a vision and
work closely with the employees to identify weaknesses that have existed in the company
before. Transformational leadership is important since it will ensure that the leadership at
AGC continues to inspire and motivate employees. In the past, the company has been
characterized by low levels of employee motivation. The success of the company in the
future is built on ensuring that the employees remain motivated. The behavior of the leaders
should be used to inspire and encourage employees at AGC.
The performance, motivation, and morale of employees at AGC can only be boosted
through transformational leadership. Each individual employee should be connected with the
collective sense of identity in the organization. All employees should be challenged to take
responsibility for the success of the organization (Diaz-Saenz, 2011). Through the application
of transformational leadership style, the employees will be better adapted to handle
challenges that have characterized AGC’s workplace environment. Every employee will be
placed in a position that enhances their strengths. All employees will be inspired to achieve
more, and this will help AGC to collectively achieve its organizational goals. A shared vision
will be created as well as the commitment that will help build intrinsic and extrinsic
motivation. The leaders in every section need to ensure that they model the desired behavior
and ensure that they create the desired organizational culture.
Organizational culture describes a collection of values and practices that guide an
organization. An organization’s culture defines the behavior and ensures that all employees in
the organization work towards fulfilling the expectations. AGC needs to ensure that it creates

UNIT 5 – INDIVIDUAL PROJECT 6
a culture defined diversity. The company has employed employees from diverse cultural
backgrounds. As a result, it is important to ensure that the needs of the employees are taken
into consideration when creating the culture. Employees, as well as the leadership, needs to
learn how to handle people who hail from different cultures. It is important for all employees
to feel a sense of belonging at AGC (Diaz-Saenz, 2011). Employees need to be exposed to
new ideas and perspectives and be trained on how to handle differences in the workplace
setup. The organization needs to capitalize on the strengths of employees while ensuring that
the weakness of individual employees does not affect the functioning of AGC as a company.
Potential Internal and External Threats
Internal threats include the low morale of employees and the inability to handle
technology. External threats include an unstable economic environment and political risks.
AGC has faced challenges that stemmed from the low morale of employees. In the
management of change, the company may experience some resistance from employees. The
inability to handle change well may result in low employee morale. Technological changes
may also impact the workforce. Technology is dynamic in nature, and this means that all
employees need to ensure that they are prepared to handle technology well. In addition, the
company runs operations in different countries. It may therefore be exposed to threats
stemming from the economy as well as the political environment.
How can AGC detect these potential internal and external threats?
The potential internal and external threats that AGC faces relate largely to the
management of personnel within the organization. These threats can be detected through
various methods. First, this can be done by conducting a SWOT analysis often. Through
SWOT analysis, the company will be able to detect some of the external threats that it faces
(Gürel & Tat, 2017). It will help AGC to examine how competition within its environment is

UNIT 5 – INDIVIDUAL PROJECT 7
likely to evolve and the implications to the company and its human resource. Using such
results, AGC will be in a position to undertake actions and make decisions that will help
create and sustain competitive advantages.
Further, internal threats can be conducted through internal analysis. For instance,
through conducting surveys and talking to employees, the management will identify some
issues facing employees within the company. Issues such as lack of job security, frequent
layoffs could be internal threats that affect the morale of employees. Such factors
consequently affect productivity. Thus, internal threats can be detected by conducting internal
analysis to help the management identify them. On the other hand, external threats
encompass a wide area as they include social, economic, demographic, political,
environmental, legal, and technological events and trends that will affect the company’s
competitiveness or ability to sustain itself. Thus, a SWOT analysis is an effective tool for
detecting external threats.
What are some methods that AGC can use to protect the organization from these
internal and external threats?
AGC should work towards tightening up its business structure. It should function as a
lean entity by responding quickly to environmental changes such as changes in consumer
demand or changes in technology. Since the company already has a policy where all
employees are trained and retrained before joining the company. It should regularly check the
training methods being used as well as skills and knowledge being passed onto the
employees. This ensures that they remain up-to-date. Also, an agile and flexible business
structure will help AGC adapt fast to changing market demands and structures.
Threats such as talent drain can best be dealt with through treating employees well
and offering them incentives. Talented and well-trained employees are expensive to replace

UNIT 5 – INDIVIDUAL PROJECT 8
(Osita et al., 2014). AGC can overcome the threat of talent drain by ensuring that employees
do not feel the need to leave the company because its environment limits their growth or is
not rewarding enough. Also, the company should check out for external threats within the
environment, such as a competitor company that wants to entice the employees by offering
better perks. AGC can maintain its employees and avoid talent drain by ensuring that the
environment is enticing enough for employees to want to stick for longer.

UNIT 5 – INDIVIDUAL PROJECT 9

References

Barak, M. E. M. (2016). Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Diaz-Saenz, H. R. (2011). Transformational leadership. The SAGE handbook of
leadership, 5(1), 299-310.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Hanaysha, J. R., & Majid, M. (2018). Employee motivation and its role in improving the
productivity and organizational commitment at higher education institutions. Journal
of Entrepreneurship and Business, 6(1), 17-28.
Osita, I. C., Onyebuchi, I., & Justina, N. (2014). Organization’s stability and productivity: the
role of SWOT analysis an acronym for strength, weakness, opportunities, and
threat. International Journal of Innovative and Applied Research, 2(9), 23-32